Earlier today, Greater Boston Chamber of Commerce president & CEO Paul Guzzi released the following statement on the corporate tax bill that is currently before the Massachusetts House of Representatives:

"The Chamber, on behalf of its 1,700 member companies that employ hundreds of thousands of Massachusetts residents, urges the Legislature to enact a tax bill that includes a reduction in the corporate tax rate to 7.0%. 

The Massachusetts corporate tax burden is simply uncompetitive.  Massachusetts’ corporate tax burden is the 9th highest in the nation (Council on State Taxation, U.S. Census Bureau), and the Massachusetts corporate tax rate of 9.5% is the 4th highest rate in the U.S (The Tax Foundation). 

Over the past five years, Massachusetts corporate income taxes have been raised by $400 million, and Massachusetts unemployment insurance taxes have been raised by $600 million – totaling a billion dollars in new taxes in recent years on Massachusetts employers.

These factors have lead to anemic job growth.  From 2003 to 2007 Massachusetts had the 48th worst rate of job creation in the country and remains more than 95,000 jobs below its previous peak. 

Furthermore, recent tax increases have fueled the perception that Massachusetts is an inhospitable place to do business – as evidenced by a 2008 Chief Executive Magazine survey in which CEO’s ranked Massachusetts as the 48th worst state for business.

As the economy teeters on the edge of recession and the state faces anemic job growth, it is essential that Massachusetts tax policy promotes rather than hinders employers’ ability to stay and grow in Massachusetts.”